Bill Text: MI HB5719 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Revenue sharing; cities and villages; increased revenue sharing payments for cities, villages, townships, and counties that participate in an incentive program; provide for. Amends 1971 PA 140 (MCL 141.901 - 141.921) by adding sec. 915.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-06-07 - Bill Electronically Reproduced 06/02/2016 [HB5719 Detail]
Download: Michigan-2015-HB5719-Introduced.html
HOUSE BILL No. 5719
June 2, 2016, Introduced by Rep. Kosowski and referred to the Committee on Appropriations.
A bill to amend 1971 PA 140, entitled
"Glenn Steil state revenue sharing act of 1971,"
(MCL 141.901 to 141.921) by adding section 915.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 915. (1) For state fiscal years beginning on and after
the 2016-2017 state fiscal year, the department of treasury shall
implement an incentive program and the department of treasury shall
use the program to distribute additional revenue sharing payments
to cities, villages, townships, and counties as provided under
subsection (2).
(2) To the extent that a city, village, township, or county
received a payment under section 952 or 955, or both, of article
VIII of 2015 PA 84, that city, village, township, or county may
qualify for an additional payment of up to an amount equal to 20%
of the payment that city, village, township, or county received in
the immediately preceding state fiscal year. A city, village,
township, or county is eligible for an increased payment under 1 or
more of the following categories at the following rates as follows:
(a) Category 1, consolidation of services, 8.0% bonus,
requires each eligible city, village, township, or county to
certify that it has entered into a plan since January 1, 2012 with
1 or more proposals to increase its existing level of cooperation,
collaboration, and consolidation, either within the jurisdiction or
with other jurisdictions. A plan shall include a listing of any
previous services consolidated with the cost savings realized from
each consolidation and an estimate of the potential savings for any
new service consolidations being planned. A plan shall be made
readily available to the public. Each city, village, township, and
county applying for a payment under this subdivision shall submit a
copy of the cooperation, collaboration, and consolidation plan to
the department of treasury.
(b) Category 2, workforce reduction, 4.0% bonus, requires each
city, village, township, or county that has entered a plan as
provided under subdivision (a) to provide documentation to the
department verifying that pursuant to the plan the city, village,
township, or county has reduced its workforce by at least 5.0% or 3
employees, whichever is more, since January 1, 2012.
(c) Category 3, budget reduction, 4.0% bonus, requires each
eligible city, village, township, or county to certify that since
January 1, 2012 that city, village, township, or county has reduced
its overall budget by at least 5.0%.
(d) Category 4, balanced budget, 4.0%, requires each eligible
city, village, township, or county to certify that since January 1,
2012 that city, village, township, or county has maintained a
balanced budget for 2 consecutive years.
(3) Payments under this section are subject to the following
conditions:
(a) In order for a city, village, township, or county to
qualify for a category under subsection (2), the city, village,
township, or county shall meet every criteria for that category
including a certification to the department that it has met the
required criteria for that category and submission of the required
cooperation, collaboration, and consolidation plan and other
required documentation as required by subsection (2). A department
of treasury review of the plan is not required in order for a city,
village, township, or county to receive a payment under subsection
(2). The department shall develop a certification process and
method for cities, villages, townships, and counties to follow.
(b) For each category that a city, village, township, or
county qualifies for in subsection (2), the city, village,
township, or county shall receive its potential incentive program
payment amount as calculated in accordance with subsection (2).
(c) If a city, village, township, or county does not provide
the required certification or fails to submit the required
cooperation, collaboration, and consolidation plan or other
verifying documentation by the first day of a payment month, the
city, village, township, or county shall forfeit the payment in
that payment month for the uncertified category in subsection (2).
(d) Any city, village, township, or county that falsifies
certification documents shall forfeit any future incentive program
payments and shall repay this state all incentive program payments
it has received.
(e) Payments under this section shall be distributed on the
last business day of October, December, February, April, June, and
August.
(4) Except as otherwise provided under sections 17a and 21, a
city, village, township, or county that qualifies for an increased
payment under this section shall continue to receive that increased
payment under this section each state fiscal year and additional
verification is not required to qualify for payments in subsequent
fiscal years.